FEES AND COST OF MEDIATION

Fees and Cost of Ad hoc Mediation

In ad hoc mediation, the parties are free to make their own arrangement as to mediation
cost and fees. In default thereof, the schedule of cost and fees to be approved by the OADR shall
be followed.
Fees and Cost of Institutional Mediation
A. In institutional mediation, mediation cost shall include the administrative charges of the
mediation institution under which the parties have agreed to be bound, mediator’s fees
and associated expenses, if any. In default of agreement of the parties as to the amount
and manner of payment of mediation’s cost and fees, the same shall be determined in
accordance with the applicable internal rules of the mediation service providers under
whose rules the mediation is conducted.

including the convenience of the parties, shall deicide on different place of arbitration.
B. Notwithstanding the rule stated in paragraph (a), the arbitral tribunal may, unless
otherwise agreed by the parties, meet at any place it considers appropriate for
consultation among its members, for hearing witnesses, experts or the parties, or for
inspection of goods, other property or documents.

Commencement of Arbitral Proceedings

Unless otherwise agreed by the parties, the arbitral proceedings in respect of a
particular dispute commence on the date on which a request for that dispute to be
referred to arbitration is received by the respondent.

Language
A. The parties are free to agree on the language or languages to be used in the arbitral
proceedings.
Failing such agreement, the language to be used shall be English. This agreement, unless
otherwise specified therein, shall apply to any written statement by a party, any hearing
and any award, decision or other communication by the arbitral tribunal.
 B. The arbitral tribunal may order that any documentary evidence shall be accompanied by a
translation into the language or languages agreed upon by the parties or determined by
the arbitral tribunal in accordance with paragraph (a).

Statement of Claim and Defense

A. Within the period of time agreed by the parties or determined by the arbitral tribunal,
the claimant shall state the facts supporting his/her/its claim, the points at issue and
the relief or remedy sought, and the respondent shall state hi/her/its defense in respect
of these particulars, unless the parties have otherwise agreed as to the required
elements of such statements. The parties may submit with their statements, all
documents they considered to be relevant or may add a reference to the documents or
other evidence they will submit.
B. Unless otherwise agreed by the parties, either party may amend or supplement his/her
claim r defense during the course of arbitral proceedings, unless the arbitral tribunal
considers it inappropriate to allow such amendment having regard to the delay in
making it.

Hearing and Written Proceedings

A. Subject to any contrary agreement by the parties, the arbitral tribunal shall decide
whether to hold oral hearings for the presentation f evidence or for oral argument, or
whether the proceedings shall be conducted on the basis of documents and other
materials. However, unless the parties have agreed that no hearings shall be held, the
arbitral tribunal shall hold such hearings at an appropriate stage of the proceedings, if so,
requested by a party.
B. The parties shall be given sufficient advance notice of any hearing and of any meeting of
the arbitral tribunal for the purposes of inspection of goods, other property or documents.
C. All statements, documents or other information supplied to the arbitral tribunal by one
party shall be communicated to the other party. Also, an expert report or evidentiary
document in which arbitral tribunal may rely in making its decision shall be
communicated to the parties.

Default of a Party
Unless otherwise agreed by the parties, if, without showing sufficient cause,
 The claimant fails to communicate his statement of claim in accordance with the
provisions of Statement of Claim and Defense, the arbitral tribunal shall terminate the
proceedings;
  The respondent fails to communicate his/her/its statement of defense in accordance
with the provisions of Statement of Claim and Defense, the arbitral tribunal shall
continue the proceedings without treating such failure in itself as an admission of the
claimant’s allegations;
 Any party fails to appear at a hearing or to produce documentary evidence, the
arbitral tribunal may continue the proceedings and make the award on the evidence
before it.

Expert Appointed by the Arbitral tribunal

Unless otherwise agreed by the parties, the arbitral tribunal,
 may appoint one or more experts to report to it on specific issues to be determined by the
arbitral tribunal; or
 may require a party to give the expert any relevant information or to produce, or to
provide access to, any relevant documents, goods or other property for his/her inspection.
Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal
considers it necessary, the expert shall, after delivery of his/her written oral report,
participate in a hearing where the parties have the opportunity to put questions to him and
to present expert witnesses in order testify on the points at issue.

Court Assistance in Taking Evidence

The arbitral tribunal or a party with the approval of the arbitral tribunal may request from a
court of the Philippines assistance in taking evidence. The court may execute the request within
its competence and according to its rules on taking evidence.
The arbitral tribunal shall have the power to require any person to attend a hearing as a
witness. The arbitral tribunal shall have the power to subpoena witnesses and documents when
the relevancy of the testimony and the materiality thereof has been demonstrated to it. The
arbitral tribunal may also require the retirement of any witness during the testimony of any other
witness.
A party may bring a petition under this Section before the court in accordance with the
Rules of Court or the Special ADR Rules.

Rules Applicable to the Substance of Dispute

 A. The arbitral tribunal shall decide the dispute in accordance with such rules of law as are
chosen by the parties as applicable to the substance of the dispute. Any designation of the
law or legal system of a given state shall be construed, unless otherwise expressed, as
directly referring to the substantive law of that state and not to its conflict of laws rules.
B. Failing any designation by the parties, the arbitral tribunal shall apply the law determined
by the conflict of laws rules, which it considers applicable.
C. The arbitral tribunal shall decide ex aequo et bono or as amiable composituer only if the
parties have expressly authorized it to do so.
D. In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract
and shall take into account the usages of the trade applicable to the transaction.

Decision-Making by Panel of Arbitrators

In arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal
shall be made, unless otherwise agreed by the parties; by a majority of all its members. However,
questions of procedure may be decided by a presiding arbitrator, if so authorized by the parties or
all members of the arbitral tribunal.

Settlement
If, during arbitral tribunal proceedings, the parties settle the dispute, the arbitral tribunal
shall terminate the proceeding and, if requested by the parties and not objected to by the arbitral
tribunal, record the settlement in the form of an arbitral award on agreed terms.
An award on agreed terms shall be made in accordance with the provisions of Form and
Contents of Award and shall state that it is an award. Such an award has the same status and
effect as any other award on the merits of the case.

Form and Contents of Award

 The award shall be made in writing and shall be signed by the arbitrators or arbitrators. In
arbitral proceedings with more than one arbitrator, the signatures of the majority of all
members of the arbitral tribunal shall suffice, provided that the reason for any omitted
signature is stated.
 The award shall state the reasons upon which it is based, unless the parties have agreed
that no reasons are to be given or the award is an award on agreed terms under the
provisions of Place of Arbitration.
 The award shall state its date and the place of arbitration. The award shall be deemed to
have been made at that place.
  After the award is made, a copy signed by the arbitrators shall be delivered to each party.

Termination of Proceedings
The arbitral proceedings are terminated by the final award or by an order of the arbitral
tribunal. The arbitral tribunal shall issue an order for the termination of the arbitral proceedings
when:
 The claimant withdraws his/her/its claim, unless the respondent objects thereto and the
arbitral tribunal recognized a legitimate interest on his/her/its part in obtaining a final
settlement of the dispute;
 The parties agree on the termination of the proceedings;
 The arbitral tribunal finds that the continuation of the proceedings has for any other
reason become unnecessary or impossible.

Correction and Interpretation of Award, Additional Award

A. Within thirty (30) days from receipt of the award, unless another period of time has been
agreed upon by the parties:
 A party may, with notice to the other party, request the arbitral tribunal to correct in
the award any errors in computations, any clerical or typographical errors or any
errors of similar nature;
 A party may, if so agreed by the parties and with notice to the other party, request the
arbitral tribunal to give an interpretation of a specific point or part of the award.
B. If the arbitral tribunal considers the request to be justified, it shall make the correction or
give the interpretation within thirty (30) days from receipt of the request. The
interpretation shall form part of the award.
C. The arbitral tribunal may correct any error of the type on its own initiative within (30)
days from the date of the award.
D. Unless otherwise agreed by the parties, a party may, with notice to the other party,
request, within (30) days of receipt of the award, the arbitral tribunal to make an
additional award as to claims presented in the arbitral proceedings but omitted from the
award. If the arbitral tribunal considers the request to be justified, it shall make the
additional award within sixty (60) days.
E. The arbitral tribunal may extend, if necessary, the period of time within which it shall
make a correction, interpretation or an additional award.
F. The provisions of Form and Contents of Award shall apply to correction or interpretation
of the award or to an additional award.

AMICABLE SETTLEMENT OF DISPUTES

Preliminaries
Katarungang Pambarangay, or the Barangay Justice System is a local justice system in
the Philippines. It is operated by the smallest of the local government units, the barangay, and is
overseen by the barangay captain, the highest elected official of the barangay and its executive.
The barangay captain sits on the Lupong Tagapamayapa along with other barangay residents,
which is the committee that decides disputes and other matters. They do not constitute a court as
they do not have judicial powers.
The system exists to help decongest the regular courts and works mostly as “alternative,
community-based mechanism for dispute resolution of conflicts,” also described as a
“compulsory meditation process at the village level.”
Throughout the Philippines the Barangay Justice Systems handles thousands of cases a
year. Since officials have more flexibility in decision-making, including from complex evidence
rules, and receive some resources from government, the courts are more numerous and
accessible than other courts and therefore the courts are able to hear more cases and to respond
more immediately.

History
There has long been a traditional, local system of resolving disputes. Presidential Decree
1508 talks an unofficial ‘time-honored tradition of amicably settling disputes among family and
barangay members at the barangay level without judicial resources.”
Alfredo Flores Tadiar was the principal author of Presidential Decree 1508, The
Katarungang Pambarangay Law, and he also wrote its implementing rules, requiring prior
conciliation as a condition for judicial recourse. For 12 years (1980-1992), he was a member of
the Committee of Consultants, Bureau of Local Government Supervision, which oversaw the
nationwide operations of the Katarungang Pambarangay law. Under the decree, the body was
known as Lupong Tagapayapa. This decree was replaced by the Local Government Code of
1991.
The Katarungang Pambarangay share characteristics with similar traditional, hybrid courts
in other countries such as Solomon Islands, Papua New Guinea, Nigeria and South Africa,
among others. Such courts emerged during colonial periods as Western imperial powers
introduced western legal systems. The Western legal systems were usually applied to westerners
while the local dispute resolution systems were integrated into the Western system in a variety of
ways including incorporation of local decision makers into the government in some way. After
independence, many states faced the same problems as their former rulers, especially “limited
geographical reach of state institutions, Western-modeled institutions often divorced from
community structure and expectations, and resources constraints in the justice sector.” Hybrid
courts became a “middle ground for supporting community decision-making while
simultaneously expanding the authority and reach of the state.”
Besides, “hybrid courts”, other authors have described the system as a “Non-State Justice
System”.

Overview on the Operations, Rules and Procedures

The Lupong Tagapamayapa is the body that comprises the barangay justice system and on
it sit the barangay captain and 10 to 20 members. The body is normally constituted every three
years and holds office until aa new body is constituted in the third year. They receive no
compensation except honoraria, allowances and other emoluments as authorized by law or
barangay, municipal or city ordinance.
Almost all civil disputes and many crimes with potential prison sentences of one year or
less or fines 5,000 or less. Philippine pesos are subjected to the system. In barangays where a
majority of members belong to an indigenous people of the Philippines, traditional dispute
mechanisms such as a council of elders may replace the barangay judicial system.
Upon receipt of the complaint, the chairman to the committee, most often the barangay
captain, shall the next working day inform the parties of a meeting for mediation. If after 15 days
for the first meeting, the mediation is not successful the a more formal process involving the
pangkat or body must be followed. There is another 15-day period to resolve the dispute through
this more formal process, extendable by the pangkat for yet another 15-day period. If not
settlement has been reached, then a case can be filed in the regular judicial system of the
Philippines.

THE KATARUNGANG PAMBARANGAY

(Presidential Decree No.1508 repealed by R.A. 7160)

Concept of Barangay and Lupong Tagapamayapa

Barangay refers not only to barrios which were declared barangays by virtue of Presidential
Decree No. 557 but also to barangays otherwise known as citizens assemblies pursuant to
Presidential Decree No. 86.
Barangay Captain refers to the Barangay Captains of the barrios which declared barangay by
virtue of Presidential Decree No. 557 and to the Chairman of barangays otherwise known as
citizens assemblies pursuant to Presidential Decree No. 86.
The Lupong Tagapamayapa
The Lupong Tagapamayapa shall be composed of the Punong Barangay as Chairman and
ten (10) to twenty (20) members. The lupon shall be constituted every three (3) years.
Any person actually residing or working in the barangay, not otherwise expressly
disqualified by law, and possessing integrity, impartiality, independence of mind, sense of
fairness, and reputation for probity, may be appointed as a member of the lupon.
A notice to constitute the lupon, which shall include names of proposed members who have
expressed their willingness to serve, shall be prepared by the punong barangay within the first
fifteen (15) days from the start of his term of office. Such notice shall be posted in three (3)
conspicuous places in the barangay continuously for a period of not less than three (3) weeks;
The Punong barangay, taking into consideration any opposition to the proposed
appointment or any recommendations for appointment as may have been made within the period
of posting, shall within ten (10) days thereafter, appoint as members those whom he determines
to be suitable therefor. Appointments shall be in writing, signed by the Punong barangay, and
attested to by the barangay secretary.
The list of appointed members shall be posted in three (3) conspicuous places in the
barangay for the entire duration of their term of office; and
In barangays where majority of the inhabitants are members of indigenous cultural
communities, local systems of settling disputes through their councils of Datus or elders shall be
recognized without prejudice to the applicable provisions of the Code.

Functions of the Lupon

 Exercise administrative supervision over the conciliation panels provided herein;
 Meet regularly once a month to provide a forum for exchange of ideas among its
members and the public matters relevant to the amicable settlement of disputes, and to
enable various conciliation panel members to share with one another their observations
and experiences in effecting speedy resolution of disputes; and
 Exercise such other powers and perform such other duties and functions as may be
prescribed by law or ordinance.

Oath and Term of Office

Upon appointment, each lupon member shall take an oath of office before the Punong
barangay. He shall hold office until a new lupon is constituted on the third year following his
appointment unless sooner terminated by resignation, transfer of residence or place of work,
 or withdrawal of appointment by the Punong barangay with the concurrence of the majority
of all the members of the lupon.

Vacancies
Should a vacancy occur in the lupon for any cause, the Punong barangay shall
immediately appoint a qualified person who shall hold office only for the unexpired portion of
the term.

Secretary of the Lupon and the Pangkat Tagapagsundo

The Barangay Secretary shall concurrently serve as the secretary of the lupon. He/She
shall record the results of mediation proceedings before the Punong barangay and shall submit a
report thereon to the proper city or municipal courts. He/She shall receive and keep the records
of proceedings submitted to him by the various conciliation panels.
Pangkat ng Tagapagsundo is a constituted body for each dispute brought before the
lupon which serves as a conciliation panel consisting of three (3) members who shall be chosen
by the parties to the dispute from the list of members of the lupon.
Should the parties fail to agree on the pangkat membership, the same shall be determined
by lots drawn by the lupon chairman.
The three (3) members constituting the pangkat shall elect from among themselves the
chairman and the secretary. The secretary shall prepare the minutes of the pangkat proceedings
and submit a copy duly attested to by the chairman to the lupon secretary and to the proper city
or municipal court. He shall issue and cause to be served notices to the parties concerned. The
lupon secretary shall issue certified true copies of any public record in his custody that is not by
law otherwise declared confidential.

Vacancies in the Pangkat

Any vacancy in the Pangkat shall be chosen by the parties to the dispute from among the
other lupon members. Should the parties fail to agree on a common choice, the vacancy shall be
filled by lot to be drawn by the lupon chairman.

Character of Office and Service of Lupon Members

The lupon members, while in the performance of their official duties or on the occasion
thereof, shall be deemed as persons in authority, as defined in the Revised Penal Code.
 The Lupon or Pangkat members shall serve without compensation, except as provided under
the Code. The Department of Interior and Local government shall provide for a system of
granting economic or other incentives to the lupon or pangkat members who adequately
demonstrate the ability to judiciously and expeditiously resolve cases referred to them. While in
the performance of their duties, the lupon or pangkat members, whether in public or private
employment, shall be deemed to be on official time, and shall not suffer from any diminution in
compensation or allowance from said employment by reason thereof.

Legal Advice on Matters Involving Questions of Laws

The provincial, city legal officer or prosecutor or the municipal legal officer shall render
legal advice on matters involving questions of law to the punong barangay or any lupon or
pangkat member whenever necessary in the exercise of his functions in the administration of the
katarungang pambarangay.

The Subject Matter for Amicable Settlement

The lupon of each barangay shall have authority to bring together the parties actually
residing in the same city or municipality for amicable settlement of all disputes except:
a. Where one party is the government, or any subdivision or instrumentality thereof;
b. Where one party is a public officer or employee, and the dispute relates to the
performance of his official functions;
c. Offenses punishable by imprisonment exceeding one (1) year or a fine exceeding Five
thousand pesos (5,000);
d. Offenses where there is no private offended party;
e. Where the dispute involves real properties located in different cities or municipalities
unless the parties thereto agree to submit their differences to amicable settlement by an
appropriate lupon;
f. Disputes involving parties who actually reside in barangays of different cities or
municipalities, except where such barangay units adjoin each other, and the parties
thereto agree to submit their differences to amicable settlement by an appropriate lupon;
g. Such other classes of disputes which the President may determine in the interest of justice
or upon the recommendation of the Secretary of Justice.
The court in which non-criminal cases not falling within the authority of the lupon under
the Code are filed may, at any time before trial, motu proprio refer the case to the lupon
concerned for amicable settlement.

Venue
 a. Disputes between persons actually residing in the same barangay shall be brought for
amicable settlement before the lupon of said barangay.
b. Those involving actual residents of different barangays within the same city or
municipality shall be brought in the barangay where the respondent or any of the
respondents actually resides, at the election of the complainant.
c. All disputes involving real property, or any interest therein shall be brought in the
barangay where the real property or the larger portion thereof is situated.
d. Those arising at the workplace where the contending parties are employed or at the
institution where such parties are enrolled for study, shall be brought in the barangay
where such workplace or institution is located.
Objections to venue shall be raised in the mediation proceedings before the Punong
barangay; Otherwise, the same shall be deemed waived. Any legal question which may
confront the Punong barangay in resolving objections to venue herein referred to may be
submitted the Secretary of Justice or his duly designated representative, whose ruling
thereon shall be binding.

Procedure for Amicable Settlement

Initiation of proceeding
Upon payment of the appropriate filing fee, any individual who has a cause of action
against another individual involving any matter within the authority of the lupon may
complain, orally or in writing, to the lupon chairman of the barangay.

Mediation by Lupon Chairman

Upon receipt of the complaint, the lupon chairman shall, within the next working day,
summon the respondent(s), with notice to the complainant(s) for them and their witnesses to
appear before him for a mediation of their conflicting interests. If he fails in his mediation effort
within fifteen (15) days from the first meeting of the parties before him, he shall forthwith set a
date for the constitution of the pangkat in accordance with the provisions of this Chapter.

Suspension of Prescriptive Period of Offenses

While the dispute is under mediation, conciliation, or arbitration, the prescriptive periods
for offenses and cause of action under existing laws shall be interrupted upon filing of the
complaint with the punong barangay. The prescriptive periods shall resume upon receipt by
 the complainant of the complaint or the certificate of repudiation or of the certification to file
action issued by the lupon or pangkat secretary: Provided, however, that such interruption
shall not exceed sixty (60) days from the filing of the complaint with the punong barangay.

Issuance of Summons; Hearing; Grounds for Disqualification

The pangkat shall convene not later than three (3) days from its constitution, on the day
and hour set by the lupon chairman, to hear both parties and their witnesses, simplify issues, and
explore all possibilities for amicable settlement. For this purpose, the pangkat may issue
summons for the personal appearance of parties and witnesses before it. In the event that a party
moves to disqualify any member of the pangkat by reason of relationship, bias, interest, or any
other similar grounds discovered after the constitution f the pangkat, the matter shall be resolved
by the affirmative vote of the majority of the pangkat whose decision shall be final. Should
disqualification be decided upon, the resulting vacancy shall be filled.

Period to Arrive at a Settlement

The pangkat shall arrive at a settlement or resolution of the dispute within (15) days from
the day it convenes in accordance with this section. This period shall, at the discretion of the
pangkat, be extendible for another period which shall not exceed fifteen (15) days, except in
clearly meritorious cases.

Form of Settlement
All amicable settlements shall be in writing, in a language or dialect known to the parties, signed
by them, and attested to by the lupon chairman or the pangkat chairman, as the case may be.
When the parties to the dispute do not use the same language or dialect, the settlement shall be
written in the language known to them.

Conciliation
a. Pre-condition to Filing of Complaint in Court
No complaint, petition, action, or proceeding involving any matter within the authority of
the lupon shall be filed or instituted directly in court or any other government office for
adjudication, unless there has been a confrontation between the parties before the lupon
chairman or the pangkat, ang that no conciliation or settlement has been reached as
certified by the lupon secretary or pangkat secretary as attested to by the lupon or pangkat
chairman or unless the settlement has been repudiated by the parties thereto.
b. Where Parties May Go Directly to Court
 The parties may go directly to court in the following instances:
1. Where the accused is under detention;
2. Where a person has otherwise been deprived of personal liberty calling for habeas corpus
proceedings;
3. Where actions are coupled with provisional remedies such as preliminary injunction,
attachment, delivery of personal property and support pendente lite; and
4. Where the action may otherwise be barred by the statute of limitations.

c. Conciliation Among Members of Indigenous Cultural Communities

The customs traditions of indigenous cultural communities shall be applied in settling
disputes between members of the cultural communities.

Arbitration
 The parties may, at any stage of the proceedings, agree in writing that they shall abide by
the arbitration award of the lupon chairman or the pangkat. Such agreement to arbitrate
may be repudiated within five (5) days from the date thereof for the same grounds and in
accordance with the procedure hereinafter prescribed. The arbitration award shall be
made after the lapse of the period for the repudiation and within ten (10) days thereafter.